Apollo Tyres Mulls Diversification Options

The Rs 1,400-crore Apollo Tyres plans to diversify into at least one of the three growth areas of power, information technology and pharmaceuticals to reduce its dependence on the tyres business. The company also plans to shift its corporate headquarters from Delhi (where it has three offices) to Gurgaon to reduce duplication of service functions.

As part of a major restructuring exercise, the company has decided to prune the staff strength at its corporate headquarters from 212 to about 75, apart from downsizing and closing down some departments.

The Onkar Kanwar-promoted company is examining various options to trim the number of personnel employed in the corporate headquarters. Apollo Tyres may redeploy people in other areas, ask them to go in for retraining to fit into new jobs or offer them options to leave the company.

A process is already on to identify areas where downsizing is possible. For instance, efforts are on to cut down staff functions in the commercial departments. The sales-to-staff ratio in the salesforce is being pruned from one salesperson to two staff members to one salesperson and one staff member. In the factories, no new workers are being recruited. Workers who are retiring are not being replaced either.

G Udayan Dravid, vice-president, marketing and organisational development, confirmed the restructuring plan. 'We are not telling people